With rising interest rates rapidly, we may be at the top of the market.
Q2 is here, and everybody’s wondering what’s happening with the market. Today I’m going to share a few things with you that could indicate that we’ve leveled off.
First, we have to talk about interest rates. They’ve increased dramatically since the beginning of the year. In January, we were in the 3% range. Today, rates are as high as 5%. Rising interest rates affect your home payment more than increasing prices, but of course, we’ve seen both, so buyers have been hit with a double whammy.
There may be less competition as interest rates rise, but your buying power will also be negatively affected. If you were thinking about buying, you might want to consider doing so right now. Two of our clients started looking at the beginning of the year whale rates were around 3.5%. They are now priced out of the market and either need to buy further away or lower their expectations for the houses they can afford.
“This may be the top of the market.”
Inventory is still low, but more homes are coming onto the market because it’s spring. How is this trend affecting offers? In January, we could get 25 offers in what felt like seconds. Today, we’re still selling homes fast and for a lot of money, but the number of offers has tapered off quite a bit. You might get about four to five offers on a property now, which is still good.
With interest rates and inflation so high, more and more buyers are being priced out of the market. As a seller, you have fewer buyers to sell to, so you’ll probably have to flatten out your price. We aren’t seeing home prices rise as quickly anymore, so if you were thinking about selling, this may be the top of the market. Even if it’s not, I don’t think we’ll continue to see skyrocketing prices.
Of course, time will tell, and I’ll keep you updated. If you have any real estate questions in the meantime, just call or email me. I’d be happy to hear from you.